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Based on the half mode substrate integrated waveguide (HMSIW) technology, a new type of Gunn diode oscillator was developed. Main emphasis was placed on HMSIW resonant cavity structure. Restrictions on the performance of the oscillators imposed by packaged networks and the self-characteristic of the Gunn diode device have been analyzed and then the HMSIW Gunn oscillator design with higher output power is optimized. This oscillator's performance is characterized by an output power of 13.2 dBm, phase noise less than -97.3 dBc/Hz at 100 kHz, output frequency of 26 GHz and frequency excursion of 40 MHz over a temperature range from 10 °C to 75 °C. It has some advantages such as planar integration, low cost, small size, good temperature-frequency stability, and low phase noise.